Windfall gains and entrepreneurial activity: Evidence from the Spanish Christmas lottery

Bermejo, Vicente J.; Ferreira, Miguel; Wolfenzon, Daniel; Zambrana, Rafael

http://hdl.handle.net/10362/143365

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Resumo(s)

We estimate the effect of cash windfalls arising from the Spanish Christmas Lottery on entrepreneurship. This lottery provides a unique setting as prizes are geographically concentrated and distributed among thousands of households. We find that lottery prizes lead to higher firm creation, startup job creation, and self-employment. The entrepreneurial response is more pronounced in regions with poorer access to finance. Firms created in winning provinces are larger, more profitable, and more likely to survive longer. Incumbent firms in winning provinces do not benefit but increase wages, suggesting a local labor market tightening. Our results suggests that regional cash windfalls can have long-lasting effects on business activity.

Palavras-chave

Entrepreneurship Firm creation Job creation Cash windfall Economic conditions Disposable income Aggregate effects Financial constraints

URI

http://hdl.handle.net/10362/143365

Citação

Bermejo, Vicente J., Ferreira, Miguel A., Wolfenzon, Daniel, Zambrana, Fernando. Hiding in plain sight: The global implications of manager disclosure. (May 2022) Nova SBE Working Paper Series No. 651

Editora

Nova School of Business and Economics

Coleções

NSBE - Working Paper Series

Licença CC

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